The company is making slow but steady progress in refocusing its products on e-business, an area where the company clearly has technology to apply but has yet to establish a strong market presence or a substantial revenue contribution.

It can be a mid-30s stock in 12 months.

We believe the downside is limited, but the stock is likely stuck in broad $6 to $12 trading range.

The corporate PC market is increasingly mature, and Microsoft has a dominant share of that market, so they are running out of room to grow faster than the market.